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Hello everyone,I know i have posted a similar thread a while back but things have changed for my oil company and money may or prolly will be an issue.I am a oilman in Midland,Texas trying to get my company off the ground and am trying to start another one in a few years.I do oil deals for extra money like drilling wells and flipping leases.I have always been intrigued with the states of Arizona and New Mexico.There is also a possiblity of Oklahoma,California, Colorado, and Arkansas.I really am worried about moving to a state that has a state tax especially if i have a high to super high income from oil and gas.
The super high income would only come if i would get overriding royalties in my business that my family member thinks I will get but I am not so sure that will come to pass.I may just stay in Texas and have property elsewhere or do VRBOs in other states.I know Texas has very high property taxes so I am thinking of just living in a smaller house or trailer to save on taxes if I have to buy into the oil wells. Also, another consideration is that oil income and speculative oil deals have more favorable tax treatment than just regular W2 wage income a worker would make.What do yall guys think about my situation.Should I stay in stay in Texas Thanks in advance.
Location: Live:Downtown Phoenix, AZ/Work:Greater Los Angeles, CA
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Originally Posted by C24L
Hello everyone,I know i have posted a similar thread a while back but things have changed for my oil company and money may or prolly will be an issue.I am a oilman in Midland,Texas trying to get my company off the ground and am trying to start another one in a few years.I do oil deals for extra money like drilling wells and flipping leases.I have always been intrigued with the states of Arizona and New Mexico.There is also a possiblity of Oklahoma,California, Colorado, and Arkansas.I really am worried about moving to a state that has a state tax especially if i have a high to super high income from oil and gas.
The super high income would only come if i would get overriding royalties in my business that my family member thinks I will get but I am not so sure that will come to pass.I may just stay in Texas and have property elsewhere or do VRBOs in other states.I know Texas has very high property taxes so I am thinking of just living in a smaller house or trailer to save on taxes if I have to buy into the oil wells. Also, another consideration is that oil income and speculative oil deals have more favorable tax treatment than just regular W2 wage income a worker would make.What do yall guys think about my situation.Should I stay in stay in Texas Thanks in advance.
No, unless you earn several hundred thousand per year, it's a difference of $30-$50/week for the median earner, which if your grossing over $1,000/week is peanuts
If you are in the oil bidness, there is no better place to be for the foreseeable future than right smack dab in the middle of the Permian. If you stay there and get rich then you can go anywhere you want and live.
It's all about total tax burden (percentage of your income that goes to taxes). Whether or not a state has an income tax may or may not be immaterial depending on your income level and other taxes - mainly sales and property taxes. There are websites out there that calculate average tax burden by state. You'd be surprised at how it can work out.
Generally, all States even out. States with no income tax tend to have higher sales, excise, and other taxes.
No income tax States:
Only seven states have no personal income tax:
Wyoming.
Washington.
Texas.
South Dakota.
Nevada.
Florida.
Alaska.
New Hampshire and Tennessee for all intents and purposes have no income tax. Dividend income is largely a non-factor for most people.
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